Community Bank System Annual Report 2021

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FY2021 Annual Report · Community Bank System

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30.2

510,000

4
1
215
3
2
4

54
3

9
6,000
2
5
0
0
433
0
9
3
6
3
38
7
3
7,
32,000

1 29
7
10

0
0
0
0
9
5
12,300,000,000
6
0
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2

3
3
8
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25.6

103
2
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2 02 1 A N N UA L R E P O R T

OUR ENTERPRISE PROFILE

A unique regional community bank with branch locations in four Northeastern states, approximately

$15 billion in assets, and noninterest income that represents nearly 40% of total revenue.

250
250+ CUSTOMER
FACILITIES COMPANYWIDE

64
1ST OR 2ND DEPOSIT MARKET
SHARE IN APPROXIMATELY 64%
OF TOWNS OR CITIES

WITH A CBNA BRANCH1

4
RETAIL BANKING
PRESENCE IN 4 STATES
(NY / PA / VT / MA)

51,200
SERVICE AREA FOOTPRINT

OF APPROXIMATELY
51,200 SQUARE MILES

2,927
2,927 COMPANY
EMPLOYEES AT YEAREND

633,000
633,000+ PERSONAL
BANKING CUSTOMER

RELATIONSHIPS

60,000
60,000+ BUSINESS
BANKING CUSTOMER

RELATIONSHIPS

39.7
NONINTEREST INCOME
ACCOUNTED FOR 39.7%
OF TOTAL REVENUE

IN 2021

4,012,833,000
$4.0 BILLION
MARKET CAPITALIZATION
AT 12/31/21

1 Based on FDIC Summary of
Deposit Data as of June 30, 2021

114,328,000
$114.3 MILLION IN REVENUE
FROM OUR NATIONAL

BENEFITS ADMINISTRATION

PLANS BUSINESS

189,694,000
$189.7 MILLION
NET INCOME FOR 2021

620,647,000
$620.6 MILLION IN TOTAL
REVENUE FOR 2021

3.48
RECORD GAAP EARNINGS
PER SHARE OF $3.48
FOR 2021

150
150+ YEAR COMMUNITY
BANK HISTORY

20
20+ YEAR CONSISTENT
BUSINESS MODEL

TABLE OF CONTENTS

LETTER TO SHAREHOLDERS 2

EXECUTIVE MANAGEMENT 20

BRANCH LOCATIONS 23

PERFORMANCE PROFILE 8

OPERATIONS REVIEW 10

BOARD OF DIRECTORS 21

CORPORATE AND

ADMINISTRATION 22

SHAREHOLDER INFORMATION 25

30.2

to rewarding

our shareholders

We are committed

and have raised our

510,000

dividend for 29
consecutive years.

4
1
215
3
2
4

54
3

9
6,000
2
5
0
0
433
0
9
3
6
3
38
7
3
7,
32,000

1 29
7
10

0
0
0
0
9
5
12,300,000,000
6
0
7
2

3
3
8
2
9
3
4
25.6

103
2
8
3

5
,7
0
0

To OUR SHAREHOLDERS, CUSTOMERS and EMPLOYEES:

With nimble strategic planning and a resilient business model, Community Bank System, Inc. produced solid

financial results in 2021. We continued to support our customers and communities amidst an undulating

global pandemic, dedicating resources to serve our customers in more efficient, safe and convenient ways.

We delivered new and improved digital banking tools with the disciplined execution that’s been our hallmark

for more than 20 years. We took deliberate steps to optimize our branch network, prudently thinning the

density created by our successful in-market acquisition strategy while maintaining our priority that all

customers have a local Community Bank branch. We focused on countering ongoing margin pressure and

driving organic growth, with strong outcomes and momentum carrying us into 2022. We were pleased to do

well by our shareholders, customers, employees and community partners alike.

By the Numbers

Our year was highly productive, as evident by the numbers. Net income grew by 15.2% over 2020, reaching

a record $189.7 million. Diluted earnings per share totaled a record $3.48 for 2021, increasing $0.40 per share,

or 13.0%, from 2020. Operating diluted earnings per share (non-GAAP) measured a record $3.49, growing

$0.25 per share, or 7.7%, over 2020.

Growing and diversified revenue streams from our nonbanking businesses boosted overall fee income to

39.7% of total revenue, compared to 22.7% for our peers. We grew the number of deposit accounts

alongside higher average account balances. Deposit funding costs of 0.09% remained not only at historic lows,

but five basis points lower than our proxy peer average. Loans grew $334.5 million, or nearly 5%, excluding

the impact of balances generated through federal stimulus programs. Our Tier 1 leverage ratio of 9.09%

at December 31, 2021 was nearly two times the well-capitalized regulatory standard of 5%. Our ample

capital position was bolstered by pristine asset quality metrics, including negligible credit losses of just

0.04% of average loans.

We increased our cash dividends by 2.4%, marking 29 consecutive years of increases and representing a

strong 2.3% dividend yield. Price to tangible book value benchmarks — or the relative value the market sees

in our company’s stock among other banks — continued to exceed our peers by a wide margin.

2.0%

1.0%

One-year total shareholder returns were

22.3%, more than twice our goal to provide 10%

average annual shareholder returns over time

and 433% 15-year cumulative shareholder

returns ranked 6th highest among the 100 largest

1.36%

publicly-traded US banks. We’ve consistently

added value for our shareholders across

all economic cycles.

1 Core ROAA, a non-GAAP measure, excludes net income attributable
to non-controlling interest, gains on securities, non-recurring
revenue/expense, amortization of intangible assets and
goodwill impairment.

20191817161514131221Return on Average Assets1 30.2

510,000

4
1
215
3
2
4

54
3

9
6,000
2
5
0
CBU’s successful
0
core deposit
433
0
gathering earned
,
it the title of
9
3
Best Retail
6
Strategy in Bank
,
Director’s 2021
3
38
7
RankingBanking
3
study.
7,
32,000

1 29
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10

0
0
0
0
9
5
12,300,000,000
6
0
7
2

3
3
8
2
9
3
4
25.6

103
2
8
3

5
,7
0
0

EXCELLENCE
RECOGNIZED
Community Bank System has a

well-earned reputation for attaining

strong performance that reflects

our consistent approach to business,

regardless of the economic

environment, and commitment to

effective execution. Our success

does not go unnoticed.

29
CBU’S 29 YEARS OF CONSECUTIVE
ANNUAL DIVIDEND INCREASES

HAVE ALLOWED IT TO RETAIN

An Altered Banking Landscape

The ongoing COVID-19 pandemic has affected our operations

and our industry in both productive and challenging ways.

A notable positive: we experienced record deposit inflows which

were largely the result of substantial federal government stimulus

support to American citizens in need. Year-end deposits

totaled $12.9 billion, up 15.0% from December 31, 2020, while

average total deposits for 2021 grew 19.1% over 2020.

Nevertheless, in an exceptionally low interest rate environment,

we had limited options to redeploy the excess liquidity

profitably on our balance sheet, in large part driving net interest

margin for the year to 2.82%, from 3.28% for 2020 and 3.76%

for 2019, prior to the pandemic’s onset. The banking industry as

a whole shared this experience.

ITS STATUS AS AN S&P DIVIDEND

Additionally, while we believe our asset quality remains

ARISTOCRAT

10
RANKED IN TOP 10 OF FORBES
AMERICA’S BEST LARGE BANKS FOR

10 OF THE LAST 13 YEARS,

INCLUDING #7 IN 2021

10
RANKED TOP 10 FOR
CUSTOMER SATISFACTION OF

MID-ATLANTIC BANKS IN

THE J.D. POWER 2020 U.S. RETAIL
BANKING SATISFACTION STUDYSM

fundamentally strong, our credit experience in 2021 was supported

by the extraordinary federal and state government financial

assistance provided to businesses and consumers throughout

the pandemic. Alongside widespread vaccine distribution

in 2021, these programs helped accelerate economic growth,

improving the credit outlook of many of our customers.

The combination of these factors and our strong customer

relationships resulted in a significant $8.8 million reserve release

for the year, benefiting bottom-line results.

The second year of the pandemic also brought our participation

in the federal government’s “second draw” Paycheck Protection

Program (“PPP”), a continuation of the low-interest loan program

introduced as part of the 2020 Coronavirus Aid, Relief, and Economic Security Act. As with the 2020 “first

draw” PPP, the “second draw” 2021 program is administered by the U.S. Small Business Administration,

which can forgive all or a portion of the loan amount if the borrower meets certain conditions. The PPP has

provided vital support to small businesses amidst the unprecedented economic disruption caused by

the pandemic. As of December 31, 2021, our business lending portfolio included 722 PPP loans with a total

balance of $87.9 million, down from 3,417 PPP loans with a total balance of $470.7 million at December 31, 2020.

We are proud to support customers in accessing this important funding.

Excluding PPP balances, 2021 loan growth totaled 4.8%, driven by increased consumer balances and stable

commercial balances compared to the prior year-end. Focused initiatives to drive organic growth across

these portfolios have been successful. Consumer indirect loans grew $167.9 million, or 16.4%, from

December 31, 2020, while consumer mortgage loans increased $154.6 million, or 6.4%. Commercial and

mortgage pipelines grew meaningfully in the third and fourth quarters of 2021, creating solid loan

growth momentum into 2022.

Optimizing Our Delivery Systems for Growth

Optimizing our core banking operations is a main strategic priority for Community Bank. In 2021 we

executed in several important ways toward this goal, announcing plans to both add to our branch network

through acquisition, reduce certain branch redundancies through consolidations, and expand the ways

in which customers can bank with us digitally. We aim to provide the most convenient and sophisticated

resources to our customers, in the most profitable way for our shareholders.

In-market bank and branch acquisitions are a foundational part of our business model. Chosen selectively,

these deals allow us to access new customers within and adjacent to the Community Bank branch footprint,

with like-minded community bank partners. In September 2021 we announced our 14th such partnership

over the past 20 years, agreeing to acquire Elmira Savings Bank, a $630 million asset bank with 12 offices

across the Southern Tier and Finger Lakes regions of New York State. With a solid mortgage business and

complimentary business lines, we expect Elmira will be $0.15 per share accretive on a full year basis,

excluding acquisition expenses. The acquisition has received shareholder approval and integration plans

are progressing well. We expect to close in the second quarter of 2022.

With Community Bank’s strong currency and history of value creation for shareholders, including those whom

we partner with, we believe we’ll have continued opportunities in 2022 and beyond to find additional bank

acquisitions that meet our criteria to create above-average shareholder returns with below-average risk.

At the same time, the pandemic fast-tracked trends in customer behavior which were progressively shifting

since the evolution of electronic banking methods in recent years. Our branch traffic for the 10 years prior

to COVID had declined approximately 4% a year. When COVID hit, it declined another 17% and has remained

around that level since. Our pre-pandemic commitment to expanding Community Bank’s digital offerings

served us well, and rapid customer adoption of digital banking tools in 2020 allowed us to acutely evaluate

our physical branch network. Across 2020 and 2021 we initiated prudent branch consolidations in

overbanked regions, while ensuring our customers all have access to a local branch.

Importantly, our transition toward digital investment was boosted by the 2021 addition of our newest Director,

Mr. Jeff Knauss. Mr. Knauss was previously CEO and co-founder of a digital marketing and advertising firm,

and he remains an active entrepreneur in the technology start-up world. His experience in the areas of digital

technology, cyber security, consumer-centric marketing, and entrepreneurship is an asset as we continue

to utilize technology to effectively serve our customers.

As we invest in our digital channels and rationalize our analog channels, we’ve also recognized an

opportunity to improve our organic execution. In the commercial space, we are investing in people, systems

and products to better identify and secure commercial business in our current footprint, while also

pursuing business in adjacent markets that have superior growth potential characteristics.

In our mortgage business, we’re investing in products, people, and systems to reposition our historically

branch-oriented origination model. We’ve added back-office resources to reduce the pipeline and

closing timelines, and we’ve seen a significant shift toward online applications, with approximately 20% of

the Bank’s residential mortgage applications being submitted digitally.

Rest assured, these efforts aim for improved execution; they will not be at the expense of credit quality.

$1.6

$0.8

10-YEAR CAGR = 5.4%

$3.4

$1.7

10-YEAR CAGR = 5.6%

Strength in Diversification

Another component of Community Bank’s

$1.70

long-term strategy is investment in

non-banking revenue streams to augment

the steady, slow-growth profile of our traditional

branch banking franchise. Our diversification

efforts focus on building momentum in

our employee benefits, wealth management

and insurance services businesses.

With technology and scale, these financial

services businesses performed with

outstanding results in 2021.

Non-banking revenues totaled $181.6 million

for 2021, growing 12.4% over 2020.

These results reflect organic growth, favorable

pricing, and the additive contributions

of a benefits acquisition and two insurance

businesses completed in 2021. Notably, in

July 2021 we acquired Fringe Benefits Design

of Minnesota, Inc., a provider of retirement

plan administration and benefit consulting

services, driving the annual revenues of

our Benefit Plans Administrative Services, Inc.

subsidiary to nearly $115.0 million.

Likewise, in August 2021 we acquired

$3.48

certain assets of the Boston-based Thomas Gregory Associates Insurance Brokers, Inc., a specialty-lines

insurance broker, driving the annual revenues of our OneGroup, NY, Inc. subsidiary to $34.0 million.

These contributions drove Community Bank’s total fee-based revenue up 7.8% to $246.2 million in 2021,

accounting for 39.7% of total revenue, up from 38.3% in 2020. In comparison, the median peer’s non-interest

revenues comprised just 22.7% of total revenue in 2021. This significant differentiation is an important

driver of our favorable long term shareholder returns.

Through strategic investment, our non-banking businesses have evolved into sophisticated and complex

enterprises with fantastic technology and capabilities that we’re now leveraging into much larger

opportunities in the marketplace. We expect to remain active acquirers in this space while continuing to drive

organic expansion across our national markets.

20191817161514131221Earnings per Share Diluted20191817161514131221Dividend Growth DeclaredExpanding Our Leadership

In 2021 we executed on plans to expand the depth of experience and diversity on our leadership team.

Our outstanding additions bring an appropriate level of expertise and perspective to provide

effective oversight of Community Bank and its subsidiaries.

At the corporate level, we were thrilled to welcome two executives with substantive experience across the

financial services industry.

In June 2021, Dimitar Karaivanov joined the Company as Executive Vice President of Financial Services

and Corporate Development. Mr. Karaivanov leads the Company’s non-banking subsidiaries and financial

services businesses and operations, including the employee benefit services and institutional trust businesses,

the wealth management and investment advisory businesses, and the insurance and risk management

businesses. He also assumes leadership of the company’s corporate development efforts, to include both the

bank and financial services businesses. With over 15 years of experience as an investment banker for

banks, other financial institutions and fintech companies, he is uniquely qualified to assume this important role.

Additionally, Maureen Gillan-Myer joined the Company as Executive Vice President and Chief Human

Resources Officer in October 2021, bringing over 29 years of leadership and oversight experience

with respect to all aspects of human capital management. Ms. Gillan-Myer brings extensive experience in

the financial services industry and a deep knowledge of leading HR strategies and implementing

programs that produce an efficient and dynamic workforce. Her unique qualifications will be essential in

guiding our continued development as an innovative, diverse and inclusive workforce and culture.

Finally, with the addition of Mr. Knauss, the Company’s Board of Directors has expanded to 13 members,

12 of whom are independent. Mr. Knauss serves on the Company’s Risk and Governance Committees

and as the Board’s representative to the Company’s Technology Committee. His knowledge of the digital

technology sector and entrepreneurial experience will be an asset to the Board during this age of digital

commerce, and we look forward to his contributions in the areas of marketing, technology development, and

business matters.

We believe Community Bank System has the people and strategy in place to continue outperforming for

our customers and shareholders alike. We’ve entered 2022 with significant energy and operating momentum

in both our banking and nonbanking businesses. We have high levels of capital to support future growth,

diversified revenue streams provided by our nonbanking businesses, a history of strong credit performance

and an exceptional core deposit base. We are deploying our excess liquidity as quickly and prudently

as possible, and we will continue to seek attractive opportunities to deploy capital in an entrepreneurial and

disciplined manner. We appreciate your continued interest in Community Bank System and we look

forward to discussing our progress throughout 2022.

Eric E. Stickels Chairman of the Board

Mark E. Tryniski President and Chief Executive Officer

PERFORMANCE PROFILE

Total Revenue1
In millions

Net Interest Income
In millions

$600

$300

$620.6

$380

$374.4

$190

10-YEAR CAGR = 7.6%

10-YEAR CAGR = 6.0%

Noninterest Income1
In millions

Net Income
In millions

$240

$120

$246.2

$180

$189.7

$90

10-YEAR CAGR = 10.7%

10-YEAR CAGR = 10.0%

Average Interest-Earning Assets
In billions

Total Deposits
In billions

$12

$13.39

$12

$12.91

10-YEAR CAGR = 9.3%

10-YEAR CAGR = 10.4%

1 Excluding securities gains/losses and debt extinguishment charges

202020202020191919191919181818181818171717171717161616161616151515151515141414141414131313131313121212121212212121212121Net Interest Income In millions2021 PERFORMANCE HIGHLIGHTS

3.48
GAAP EARNINGS OF $3.48
PER SHARE FOR FULL YEAR

2021, UP $0.40, OR 13.0%,

FROM $3.08 PER SHARE FOR

FULL YEAR 2020

0.04
CONTINUATION OF EXCELLENT

ASSET QUALITY METRICS,

WITH 2021 NET CHARGE-OFF
RATIO OF 0.04%

92.8
CORE NON-TIME DEPOSITS

OF $11.98 BILLION MAKE
UP 92.8% OF TOTAL DEPOSITS

0.09
FULL YEAR TOTAL COST OF
DEPOSITS OF 0.09%

1.72
CASH DIVIDEND RAISED FOR

THE 29TH CONSECUTIVE YEAR
TO AN ANNUALIZED $1.72

189.7
NET INCOME
OF $189.7 MILLION

620.6
TOTAL REVENUE1
OF $620.6 MILLION

3.49
OPERATING DILUTED

EARNINGS OF
$3.49 PER SHARE

39.7
NONINTEREST REVENUES
REPRESENTED 39.7%
OF OPERATING REVENUES

Selected Financial Highlights

Income Statement
IN MILLIONS

2021

2011

Net interest income

374.4 $

209.4

Noninterest income
Total revenue1
Operating expenses2

246.2

620.6

387.3

Net income

189.7 $

Net interest margin

2.82%

Per Share Data (Diluted)

Earnings per share

3.48 $

Operating earnings per share

Cash dividends declared

Book value

3.49

1.70

38.99

Tangible book value

23.77 $

89.3

298.7

185.5

73.1

4.07%

2.01

2.12

1.00

20.94

11.85

Balance Sheet Data
END OF PERIOD, IN MILLIONS

Assets

Loans

Deposits

15,553 $

6,488

7,374

12,911

Shareholders’ equity

2,101 $

3,471

4,795

775

CAGR
10-YEAR

6.0%

10.7%

7.6%

10.0%

(3.6%)

5.6%

5.1%

5.4%

6.4%

7.2%

9.1%

7.8%

10.4%

10.5%

COMMUNITY BANK with a
STRONG MARKET PRESENCE

Through a series of strategic acquisitions, we have built Community Bank into one of the largest community banks

based in Upstate New York with more than $15 billion in total assets. Today, our branch network serves individual and

business customers across four states.

N ORT HERN NEW YORK
The North Country of New York,
including the Adirondacks and east
to the Vermont border

SOUTHERN NEW YOR K
New York’s Southern Tier,
encompassing much of Western
New York and the Finger Lakes

CENTRAL NEW YOR K
From the Eastern Shore of
Lake Ontario through Syracuse and
reaching the Hudson Valley

MARKET AREA ~16,700 sq. mi.

MARKET AREA ~12,000 sq. mi.

MARKET AREA ~7,200 sq. mi.

POPULATION

1.0M

POPULATION

2.8M

POPULATION

1.1M

CAP ITAL REGION
Serving Albany and the five counties
in and around the Capital District

PENNSYLVANIA
Serving the Northeastern portion
of Pennsylvania

NEW ENGLAND
Encompassing Vermont and part
of Western Massachusetts

MARKET AREA ~2,700 sq. mi.

MARKET AREA ~4,100 sq. mi.

MARKET AREA ~8,500 sq. mi.

POPULATION

0.6M

POPULATION

0.7M

POPULATION

1.1M

A Highly Cost-effective Funding Network

We have built an effective and highly-efficient funding engine powered by our strong market position in primarily

non-metropolitan locations across New York, Pennsylvania, Vermont and Massachusetts. This strength is reflected by our

first or second market share in approximately two thirds of the towns and cities where we have a branch location.

12,911,168,000
$12.9 BILLION OF TOTAL
DEPOSITS AT 12/31/21

0.09
DEPOSIT FUNDING COSTS
AVERAGED 0.09% FOR
FULL YEAR 2021

3,921,663,000
$3.9 BILLION IN
NONINTEREST-BEARING

11,982,837,000
$12.0 BILLION CORE CHECKING
& SAVINGS DEPOSITS

DEPOSITS AT YEAR-END 2021

AT 12/31/21

30.4
30.4% DEMAND DEPOSITS

24.8
24.8% OF ALL DEPOSITS
ARE INTEREST CHECKING

7.2

TIME DEPOSITS MAKE UP
7.2% OF TOTAL DEPOSITS

20.1

17.5

MONEY MARKET DEPOSITS
ACCOUNT FOR 20.1% OF
TOTAL DEPOSITS

SAVINGS ACCOUNTS
MADE UP 17.5% OF DEPOSITS
AT YEAR-END

35,000
35,000 NEW RETAIL CHECKING
ACCOUNTS OPENED IN 2021

5,000
5,000 NEW BUSINESS CHECKING
ACCOUNTS OPENED IN 2021

30.2

510,000

Approximately 93%
of deposits come

4
1
215
3
2
4

54
3

9
6,000
2
5
0
0
433
0
9
3
6
3
38
7
3
7,
32,000

1 29
7
10

0
0
0
0
9
5
12,300,000,000
6
0
7
2

savings accounts.
3
3
8
2
9
3
4
25.6

103
2
8
3

5
,7
0
0

from core checking,

money market and

DIVERSIFIED and HIGH QUALITY
LENDING PORTFOLIO

Our loan portfolio is well balanced with approximately 42% in business and commercial loans, 35% residential

mortgage loans, and 23% in consumer installment loans. Consumer loans include more than $1 billion of indirect

lending, reflecting our more than 35 years of experience originating loans through dealerships within our

service footprint.

3,075,904,000
$3.1 BILLION IN BUSINESS
LENDING PORTFOLIO

AT YEAR-END

398,061,000
$0.4 BILLION OF HOME
EQUITY LOANS AT

YEAR-END 2021

134,000
$134,000 AVERAGE
RESIDENTIAL MORTGAGE

BALANCE AT 12/31/21

567,000
$567,000 AVERAGE
COMMERCIAL LOAN
RELATIONSHIP1 AT 12/31/21

Asset Quality Metrics

2,556,114,000
$2.6 BILLION IN CONSUMER
MORTGAGE LOANS AT 12/31/21

1,189,749,000
$1.2 BILLION IN CONSUMER
INDIRECT PORTFOLIO

AT YEAR-END

153,811,000
$0.2 BILLION IN CONSUMER
DIRECT LOANS AT 12/31/21

4.22
4.22% LOAN YIELD
AT DECEMBER 31, 2021

65,000
$65,000 AVERAGE HOME
EQUITY BALANCE AT 12/31/21

23,000
$23,000 AVERAGE
INDIRECT LOAN BALANCE

AT 12/31/21

900
MORE THAN 900 DEALERSHIPS
SERVICED THROUGH INDIRECT

DEALER RETAIL CENTER

1 Excluding Paycheck Protection Program (“PPP”) loans

Our asset quality metrics are consistently very strong, reflecting disciplined underwriting standards, combined

with a deep understanding of our markets and customer base.

0.04
NET CHARGE-OFFS MADE
UP JUST 4 BASIS POINTS OF
AVERAGE LOANS IN 2021

0.62
NONPERFORMING LOANS MADE
UP 62 BASIS POINTS OF TOTAL
LOANS AT 12/31/21

1.00
1.00% RATIO OF
DELINQUENT LOANS TO

LOANS AT YEAR-END

110
ALLOWANCE FOR CREDIT

LOSSES TO NONPERFORMING
LOANS RATIO OF 110%
AT 12/31/21

0.68
ALLOWANCE FOR CREDIT

LOSSES TO LOANS

OUTSTANDING AT YEAR-END
WAS 0.68%

0.04%

0.24%

0.12%

20191817161514131221Net Charge-offs/Average Loans ,

30.2

growth and the

Total loans grew to

combination of organic

$7.37 billion at
year-end through a

Bank’s participation
510,000
in the PPP.

4
1
215
3
2
4

54
3

9
6,000
2
5
0
0
433
0
9
3
6
3
38
7
3
7,
32,000

1 29
7
10

0
0
0
0
9
5
12,300,000,000
6
0
7
2

3
3
8
2
9
3
4
25.6

103
2
8
3

5
,7
0
0

A SUBSTANTIAL FINANCIAL
SERVICES BUSINESS

Our financial services businesses provide a significant complement to the Company’s value creation strategy,

with annual revenue of more than $181.6 million. This equates to a 10-year compound annual growth rate through

December 31, 2021 of 15.7%. Among our diversified financial services businesses is our nationwide benefits

plans business, which is one of the country’s 35 largest retirement plan record keepers and provides services to

many large and recognizable companies.

BPAS, Inc. US and Puerto Rico

BPAS, Inc. is a national provider of retirement plans, benefit plans, fund administration, and collective investment

trusts. BPAS operates eight subsidiaries through 13 offices located in the United States and Puerto Rico.

These subsidiaries include Benefit Plans Administrative Services, LLC, BPAS Actuarial & Pension Services, LLC,

Hand Benefits & Trust, Hand Securities, Inc., Northeast Retirement Services, LLC, Global Trust Company,

BPAS Trust Company of Puerto Rico, and Fringe Benefits Design of Minnesota.

4,200
4,200 RETIREMENT PLANS

110,000,000,000
$110 BILLION
IN TRUST ASSETS

400
~400 EMPLOYEES WITHIN
OUR BPAS SUBSIDIARY

5
5 EMPLOYEE BENEFIT SERVICES
ACQUISITIONS SINCE 2015

Wealth Management & Insurance NY, PA, VT, SC, MA and FL

Our wealth management subsidiaries including Community Investment Services, Inc., Nottingham Advisors, Inc.,

Community Bank Trust Services, The Carta Group, Inc., and OneGroup Wealth Partners, Inc. Through these we

provide comprehensive asset management, strategic wealth planning and management, and trust administration.

Our insurance subsidiary, OneGroup NY, Inc., provides risk management services.

20.2
REVENUE GREW AT
A 10-YEAR CAGR OF 20.2%
THROUGH 2021

6
6 WEALTH MANAGEMENT
SERVICES ACQUISITIONS

SINCE 2017

67,232,000
$67.2 MILLION IN 2021
TOTAL REVENUES

8
8 INSURANCE SERVICES
ACQUISITIONS SINCE 2015

9,000,000,000
~$9 BILLION ASSETS
UNDER MANAGEMENT OR
ADMINISTRATION

11.6
11.6% INCREASE IN REVENUE
FROM WEALTH MANAGEMENT
AND INSURANCE FROM 2020

6
6TH LARGEST BANK-OWNED
PROPERTY/CASUALTY AGENCY

IN INSURANCE JOURNAL’S

2021 RANKING

30.2

country’s largest

BPAS is one of the

510,000

4
1
215
3
2
4

54
3

9
6,000
2
5
0
0
433
0
9
3
6
3
38
7
3
7,
32,000

1 29
7
10

0
0
0
0
9
5
12,300,000,000
6
0
7
2

3
3
8
2
9
3
4
25.6

103
2
8
3

5
,7
0
0

more than 510,000
participants.

providers, serving

benefits plans

INVESTING in †e FUTURE f∫
OUR CUSTOMERS and COMMUNITIES

Conducting business as a responsible and proactive community citizen is natural for us. It’s been an essential

part of who we are since Community Bank’s founding more than 150 years ago. Investing in the future for

our customers and communities goes beyond dollars. Our team volunteers thousands of hours to the communities

we serve and we are intentional about the organizations we support. We’re also dedicated to being a diverse

employer and partner. In 2020 we launched a Diversity Council to advance various strategic corporate culture and

diversity initiatives.

2,000
OVER 2,000 CAUSES AND
ORGANIZATIONS SUPPORTED

8,000
MORE THAN 8,000 EMPLOYEE
VOLUNTEER HOURS

2,300,000
OVER $2.3 MILLION CONTRIBUTED
THROUGH DONATIONS, GRANTS

AND SPONSORSHIPS

600
600 CULTURAL, CIVIC, ECONOMIC
DEVELOPMENT AND SOCIAL

100
100% RECYCLING RATE OF
COMPANY’S ELECTRONICS

SERVICE ORGANIZATIONS

SUPPORTED THROUGH MONETARY

CONTRIBUTIONS

A strong and significant COVID-19 response in support of our customers

719,500,000
$719.5 MILLION IN TOTAL LOAN
ORIGINATIONS PROVIDED THROUGH

THE PAYCHECK PROTECTION

PROGRAM SINCE 2020

700,000,000
AT THE HEIGHT OF THE

COVID-19 PANDEMIC, TOTAL

LOANS ON DEFERRAL
EXCEEDED $700 MILLION

Leveraging Our Strong Technology Platform

Investing for the future also means strengthening our digital capabilities. In recent years, we have made significant

upgrades to our customer-facing technology, creating robust and easy to use platforms that have earned positive

feedback from our customers. These enhancements have included a new mobile banking app launched in 2020,

a small business loan application online portal, a treasury management tool for business and municipal customers,

and a loan application portal for second-draw PPP loans. Our focus on technology also supports our efforts to

implement environmentally sound practices. For example, our online mortgage banking platform helps to reduce

paper usage during the lending process.

55
55% OF TOTAL CUSTOMERS
ARE ENROLLED

IN DIGITAL BANKING

54
54% OF CORE DEPOSIT
CUSTOMERS ARE

E-STATEMENT USERS

225,000
MORE THAN 225,000 ACTIVE
MOBILE BANKING USERS

23
23% OF CONSUMER
CORE DEPOSIT CUSTOMERS

USE ONLINE BILL PAY

20
20% OF RESIDENTIAL
MORTGAGE APPLICATIONS

7,100,000
MORE THAN 7.1 MILLION MONTHLY
DEBIT CARD TRANSACTIONS

SUBMITTED ONLINE

ON AVERAGE IN 2021

30.2

CBU provided over

510,000

4
1
215
3
2
4

54
3

9
6,000
2
5
0
0
433
0
9
3
6
3
38
7
3
7,
32,000

1 29
7
10

0
0
0
0
9
5
12,300,000,000
6
0
7
2

3
3
8
2
9
3
4
25.6

103
2
8
3

5
,7
0
0

5,700 Paycheck Protection
Program loans during

the program’s duration.

COMPELLING INVESTMENT PROFILE

| Consistent business model for over 20 years | Market-leading branch system serving predominantly

non-urban markets | Excellent low-cost core deposit base | Focused on profitable customer relationships

| Disciplined growth through organic and acquired opportunities | Focused on low-risk accretive

mergers and acquisitions | Goal of 10% average annual shareholder returns over time | Cash dividend

payment raised every year for the past 29 years, providing a meaningful dividend and yield | Focus on revenue

diversification, which has driven noninterest income to 39.7% of revenue | Successful and effective operating

strategy | Strong fundamentals with excellent asset quality on a consistent basis | NYSE-listed company

with both significant institutional ownership and significant liquidity

Ownership Summary
AT 12/31/21 OR MORE RECENT AVAILABLE

53,878,000
53.9 MILLION SHARES
OUTSTANDING

71
ABOUT 71% OF SHARES
HELD BY INSTITUTIONS

53,200,000

APPROXIMATE FLOAT OF
53.2 MILLION, OR 98.7%

38,100,000
38.1 MILLION SHARES
HELD BY INSTITUTIONS

285
285 INSTITUTIONAL
HOLDERS

350
~350 PORTFOLIO
POSITIONS

15,700,000
APPROXIMATELY 15.7 MILLION
RETAIL SHARES

29
29% SHARES OUTSTANDING
ARE RETAIL SHARES

4,012,833,000
$4.01 BILLION
MARKET CAP

21.4
21.4 PRICE/EARNINGS (TTM)

195,000
195,000 AVERAGE
3-MONTH DAILY VOLUME

1.72
ANNUALIZED DIVIDEND OF
$1.72 BASED ON MRQ

49.4
49.4% DIVIDEND
PAYOUT RATIO

82.53
52 WEEK HIGH STOCK
PRICE OF $82.53

Investment Profile
AT 12/31/21

74.48
CLOSING PRICE OF $74.48

3.1
3.1 PRICE/TANGIBLE
BOOK VALUE

2.31
2.31% DIVIDEND YIELD

61.24
52 WEEK LOW STOCK
PRICE OF $61.24

30.2

total return to

Our 15-year cumulative

510,000

4
1
215
3
2
4

54
3

9
6,000
2
5
0
0
433
0
9
3
6
3
38
7
shareholders of 433%
3
(11.8% annualized),
7,
32,000

1 29
7
10

0
0
0
0
9
5
12,300,000,000
6
0
7
2

3
3
8
2
9
3
4
25.6

103
2
8
3

5
,7
0
0

the KBW Regional Banking

compares favorably to

Index return of 87%

(4.1% annualized).

EXECUTIVE MANAGEMENT

Mark E. Tryniski
PRESIDENT and CHIEF EXECUTIVE OFFICER

Joined CBU in 2003 and has previously served as
CFO and COO. Prior to joining the company, he
was a partner with PricewaterhouseCoopers, LLP.

Joseph E. Sutaris
EVP, CHIEF FINANCIAL OFFICER

Joined CBU in 2011 following its acquisition of
The Wilber Corporation, where he held
several roles, including CFO.

George J. Getman
EVP, GENERAL COUNSEL

Prior to joining CBU in 2008, he provided
corporate counsel to CBU as a senior partner at
Bond, Schoeneck & King, PLLC.

Maureen Gillan-Myer
EVP, CHIEF HUMAN RESOURCES OFFICER

Prior to joining Community Bank System in
October 2021, Ms. Gillan-Myer served as Senior
Executive Vice President and Chief Human
Resources Officer of HSBC, USA.

Dimitar A. Karaivanov
EVP, FINANCIAL SERVICES and
CORPORATE DEVELOPMENT

Joined Community Bank System in June 2021.
Prior to then, Mr. Karaivanov served as Managing
Director in Lazard’s Financial Institutions Group.

Jeffrey M. Levy
SVP, PRESIDENT of COMMERCIAL BANKING

Joined CBU in 2018 as a regional executive and
was promoted in January 2022 to his current role.
Mr. Levy previously worked at NBT Bank
and M&T Bank.

Joseph F. Serbun
SVP, PRESIDENT of RETAIL BANKING

Joined CBU in 2008. Prior to that, he had worked
at Partners Trust Bank and JPMorgan Chase Bank.

From left to right: Joseph Sutaris, Jeffrey Levy,

Dimitar Karaivanov, Joseph Serbun, Mark Tryniski (front),

George “Joe” Getman and Maureen Gillan-Myer.

C O M M U N I T Y B A N K , N . A .

PENNSYLVANIA REGIONAL

ADVISORY BOARD

John Basalyga

William Ruark

Colleen Doyle, Esq.

Lissa Bryan-Smith

John Graham

James Shoemaker, Esq.

Gerard O’Donnell

BOARD of DIRECTORS

Eric E. Stickels
CHAIRPERSON OF THE BOARD
RETIRED PRESIDENT, COO and SECRETARY
ONEIDA FINANCIAL CORP.

DIRECTOR SINCE 2015

Brian R. Ace
RETIRED OWNER LACEYVILLE HARDWARE

COMMITTEES Governance; Compensation

DIRECTOR SINCE 2003

Mark J. Bolus
PRESIDENT and CEO
BOLUS MOTOR LINES, INC.

COMMITTEES Compensation, Chair;
Strategic/Executive; Trust and Financial Services
DIRECTOR SINCE 2010

Jeffrey L. Davis
PRESIDENT J.L. DAVIS, INC.

COMMITTEES Governance, Chair; Audit/Compliance

DIRECTOR SINCE 2017

Jeffery Knauss
CEO and CO-FOUNDER DIGITAL HYVE

COMMITTEES Governance
DIRECTOR SINCE 2021

John Parente
CEO CP MEDIA, LLC

COMMITTEES Trust and Financial Services, Chair;
Strategic/Executive
DIRECTOR SINCE 2010

Susan E. Skerritt
RETIRED CHAIRWOMAN, CEO and PRESIDENT
DEUTSCHE BANK TRUST COMPANY AMERICAS

COMMITTEES Audit/Compliance; Compensation
DIRECTOR SINCE 2020

Mark E. Tryniski
PRESIDENT and CEO
COMMUNITY BANK SYSTEM, INC.

DIRECTOR SINCE 2006

Neil E. Fesette
OWNER, PRESIDENT and CEO
FESETTE REALTY, LLC and
FESETTE PROPERTY MANAGEMENT

COMMITTEES Strategic/Executive, Chair;
Compensation; Governance
DIRECTOR SINCE 2010

Kerrie D. MacPherson
RETIRED SENIOR PARTNER
ERNST & YOUNG, LLP

COMMITTEES Audit/Compliance;
Trust and Financial Services
DIRECTOR SINCE 2019

Raymond C. Pecor, III
PRESIDENT LAKE CHAMPLAIN
TRANSPORTATION COMPANY

COMMITTEES Risk, Chair; Compensation
DIRECTOR SINCE 2017

Sally A. Steele
LEAD DIRECTOR

ATTORNEY AT LAW

COMMITTEES Governance; Strategic/Executive;
Trust and Financial Services
DIRECTOR SINCE 2003

John F. Whipple, Jr.
CEO BUFFAMANTE WHIPPLE BUTTAFARO, P.C.

COMMITTEES Audit/Compliance, Chair; Governance
DIRECTOR SINCE 2010

NOTE All bank board members
participate in the Risk Committee

ADMINISTRATION

EXECUTIVE
Mark E. Tryniski, President and Chief Executive Officer
Joseph E. Sutaris, EVP, Chief Financial Officer
George J. (Joe) Getman, EVP, General Counsel
Maureen Gillan-Myer, EVP, Chief Human Resources Officer
Dimitar A. Karaivanov, EVP, Financial Services and
Corporate Development
Jeffrey M. Levy, SVP, President of Commercial Banking
Joseph F. Serbun, SVP, President of Retail Banking

RETAIL BANKING
Hal Wentworth, SVP, Retail Banking and Marketing
Kent Backus, Regional Retail Banking Manager
Paul Lepore, Regional Retail Banking Manager
Lisa Allenson, Regional Retail Banking Manager
Jody Tonkery, Regional Retail Banking Manager
Denise Allen, Regional Retail Banking Manager
Susanne Mullin, Regional Retail Banking Manager
Victoria Strader, Regional Retail Banking Manager
Anita Bourgeois, SVP, Retail and Municipal Banking Manager
George Cooper, VP Capital District
Barbara Maculloch, Regional President Pennsylvania
Lynne Wadsworth, Branch Services Administrator
Dara Penny, Director of Marketing

COMMERCIAL/CONSUMER LENDING
AND CREDIT ADMINISTRATION
Scott Boser, SVP, Director of Consumer and Mortgage Lending
Luke Fagan, SVP, Chief Commercial Credit Officer
Mark Houghtaling, Director of Credit Administration &
Commercial Credit Officer
John Keshavan, Director of Special Assets
James Murphy, Commercial Credit Officer

FINANCE & TREASURY MANAGEMENT
Joseph J. Lemchak, SVP, Chief Investment Officer
Deresa Durkee, Corporate Controller
Robert Frost, VP of Finance, Director of Capital Planning
and Analysis
Sean Howard, Senior Treasury Officer
Carlena Wallace, Director of Internal Controls

ADMINISTRATIVE SERVICES
Michael Abdo, SVP, Senior Associate General Counsel
Danielle Cima, Associate General Counsel, Corporate Secretary
Dorothy Quarltere, Chief Compliance Officer
Brett Fisk, Director of Facilities
Randy Pray, Corporate Purchasing Manager

INFORMATION TECHNOLOGY & OPERATIONS
Aaron Friot, SVP, Chief Technology Officer
Susan Fox, SVP, Chief Information Officer
Christina Sullivan, Director of Business Information Systems
Shelley Quinn, Director of Customer Care and Cash Management
Barbara Snyder, Director of Loan Operations
Paula Demo, Director of Process Improvement
Christina Morin, Deposit Operations Manager
Belord Kunjeer, Director of Digital Banking Technology
Nadim Hussain, Director of Data Analytics
Thomas Gurgol, Director of Application Development

RISK MANAGEMENT
Paul Ward, SVP, Chief Risk Officer
Dennelle Michalski, Director of Risk Management
Timothy Miller, Director of Information Security
Gail Whipple, Director of Internal Audit
John Miller, Bank Secrecy Officer

COMMUNITY BANK
COMMERCIAL BANKING

W E S T E R N R E G I O N
John Eagleton, SVP, Commercial Banking Group Manager
Christopher Humphrey, Commercial Banking Team Leader

N O R T H E R N R E G I O N
Allen Racine, Commercial Banking Team Leader
Ronald Bacon, Commercial Banking Team Leader

S Y R AC U S E / O N E I DA R E G I O N
Russell Brewer, SVP, Commercial Banking Group Manager
Thomas Breed, Commercial Banking Team Leader

S O U T H E R N R E G I O N
D. James Vedora, SVP, Commercial Banking Group Manager
Ed Michalek, Commercial Banking Team Leader

C E N T R A L R E G I O N
Jeffrey Lord, SVP, Commercial Banking Sales Manager

C A P I TA L R E G I O N
Ken Countermine, SVP, Commercial Banking Group Manager

P E N N S Y LVA N I A R E G I O N
Matthew Dougherty, SVP, Commercial Banking Group Manager
Richard Kazmerick, Commercial Banking Team Leader

N E W E N G L A N D R E G I O N
Matthew Durkee, Regional President New England
Bruce Bernier, SVP, Commercial Banking Group Manager
Patrick Calecas, Commercial Banking Team Leader

WEALTH MANAGEMENT GROUP
Paul Restante, Managing Director

COMMUNITY INVESTMENT SERVICES, INC.
Theresa Kalil-Lennon, SVP, Sales and Marketing Director
Scott Duggleby, SVP, Regional Sales Manager
Chasity Jaynes, SVP, Director of Operations

TRUST SERVICES
Catherine Koebelin, SVP, Chief Trust Officer, Olean
Charles Perrillo, SVP, Chief Trust Investment Officer,
South Burlington
Karissa McDonough, SVP, Fixed Income Strategist

NOTTINGHAM ADVISORS, LLC
100 Corporate Parkway, Suite 338, Amherst, NY
Thomas Quealy, Chief Executive Officer
Lawrence Whistler, President, Chief Investment Officer

ONE GROUP
706 North Clinton Street, Syracuse, NY
Pierre Morrisseau, Chief Executive Officer
Chris Mason, President
Kevin Bryans, Chief Financial Officer

BENEFIT PLAN SERVICES

B PA S
6 Rhoads Drive, Utica, NY

Paul M. Neveu, Chief Executive Officer
Linda S. Pritchard, SVP, Recordkeeping Services
3401 Masons Mill Road, Suite 601, Huntingdon Valley, PA
Mary Anne Geary, President

B PA S AC T U A R I A L A N D P E N S I O N S E R V I C E S
706 North Clinton Street, Syracuse, NY
Vincent F. Spina, President
Steven P. Chase, SVP
Sarah E. Dam, SVP
60 East 42nd Street, Suite 1062, New York, NY
Sheryl Gabriel, SVP

H A N D B E N E F I T S & T R U S T
820 Gessner, Suite 1250, Houston, TX
Stephen Hand, President
Kathy A. Harvey, SVP
Gregg K. Zimmerman, SVP

B PA S T R U S T C O M PA N Y P U E R T O R I C O
VIG Tower, 1225 Ponce De Leon Ave, Suite 804, San Juan, PR
Alfredo Matheu, BPAS President, Puerto Rico

N O R T H E A S T R E T I R E M E N T S E R V I C E S , I N C . ( N R S )
12 Gill Street, Suite 2600, Woburn, MA
Chris Hulse, Chief Executive Officer
Freddie Jacobs, Chief Operating Officer
Frank Lallos, Chief Business Officer
Christopher Ellis, Chief Financial Officer
Arvind Kesireddy, IT Strategy Officer

BRANCH LOCATIONS

NORTHERN NEW YORK

SOUTHERN NEW YORK

Adams
Alexandria Bay
Ausable Forks
Black River
Camden
Canton (80 Main St)
Canton (45-49 Court St)
Drive-up Only
Champlain
Chateaugay
Clayton
Fulton
Gouverneur
Hannibal
Harrisville
Indian Lake
Lake Placid
Long Lake
Lowville (State St)
Lowville (Turin Rd)
Drive-up Only
Lyons Falls
Madrid
Malone (West Main St)
Malone (Elm St) Drive-up Only
Massena
North Creek
Norwood
Ogdensburg (Ford St)
Ogdensburg (State St)
Old Forge
Oswego
Plattsburgh (Margaret St)
Plattsburgh (Route 3)
Potsdam (Market St)
Potsdam (May Rd)
Drive-up Only
Pulaski
Rome Griffiss
Rome Turin Road
Saranac Lake (Broadway)
Saranac Lake (Lake Flower)
Drive-up Only
St. Regis Falls
Star Lake
Ticonderoga
Tupper Lake
Waddington
Watertown (Arsenal St)
Watertown (Washington St)
West Carthage
Westmoreland
Whitehall

Addison
Alfred
Allegany
Andover
Angelica
Arkport
Avon
Bath
Belmont
Belfast
Bolivar
Boonville (Main St.)
Boonville (Headwaters Plaza)

Drive-up Only
Canandaigua
Cassadaga Drive-up Only
Cato
Cicero
Clarence
Clifton Springs (Main St)
Clifton Springs (Clifton Plaza)
Drive-up Only
Clymer
Corning (West Market St)
Corning (West Pulteney St)
Cuba
Dansville
Dewitt
Dunkirk (Central Ave)
Dunkirk (Vineyard Dr)
Elmira
Erwin/Painted Post
Drive-up Only
Falconer
Fillmore
Franklinville
Geneseo
Geneva
Gowanda
Hammondsport
Henrietta
Hornell (Steuben Square)
Horseheads (Consumer Square)
Ithaca
Jamestown (Brooklyn Square)
Lakewood
Livonia
Moravia
Mount Morris
Naples
Newark (Church St)
Newark Plaza
Nichols
North Collins
Olean (North Union St)
Olean (Delaware Park)
Drive-up Only
Orchard Park
Ovid
Owego
Palmyra
Penn Yan (Lake St)
Drive-up Only
Penn Yan (Main St)

Phelps
Portville
Randolph
Ripley
Rushville
Salamanca
Seneca Falls
Sherman
Silver Creek
Skaneateles
Springville (South Cascade Dr)
Springville (North Buffalo St)
Warsaw
Waterloo
Watkins Glen
Wellsville (North Highland Ave)
Wellsville (North Main St)
Westfield
Woodhull
Yorkshire

CENTRAL NEW YORK

Boiceville
Canastota
Cazenovia
Chittenango
Cobleskill
Cooperstown (Otsego)
Delhi
Downsville
Hamilton
Hannibal
Johnson City
Milford
Morris
Norwich (State Highway)
Oneida (182 Main St)
Oneida (585 Main St)
Oneonta (Main St)
Oneonta (Chestnut St)
Oneonta (Southside)
Schenevus
Sidney
Vernon
Walton

CAPITAL REGION
OF NEW YORK

Albany
Amsterdam
Canajoharie
Chatham
Delmar
East Greenbush
Greenport
Johnstown
Kinderhook
Latham
Valatie

NEW ENGLAND
Vermont and Massachusetts

Barre
Bennington
Bradford
Brattleboro
Bristol
Burlington (College St)
Burlington (North Ave)
Enosburg
Essex Junction
Fair Haven
Hardwick
Hinesburg
Jericho
Johnson
Manchester
Northfield
Rutland (Green Mountain Plaza)
Rutland (Woodstock Ave)
South Burlington

(Shelburne Rd)

South Burlington

(Williston Rd)

South Hero
Springfield, VT
Springfield, MA
St. Albans
St. Johnsbury
Vergennes
Waterbury
White River Junction
Williston (Cottonwood Dr)
Wilmington
Winooski

PENNSYLVANIA

Carbondale Drive-up Only
Clarks Summit
Daleville
Edwardsville Drive-up Only
Freeland
Hazleton (Airport Rd)
Hazleton (South Church St)
Jermyn
Kingston
Laceyville
Lansford
Lehighton
Meshoppen
Montrose
Olyphant
Pittston
Scranton (Keyser Ave)
Scranton (Minooka)
Scranton (North Washington Ave)
Scranton (Wyoming Ave)
Towanda
Tunkhannock
Trucksville/Back Mountain
Wilkes Barre (North Franklin St)
Wilkes Barre (South Main St)
Wyalusing

CONTINUOUS GROWTH PROFILE

Our focus is always on building additional shareholder value into our diversified financial services enterprise.

This is accomplished through organic growth in core banking relationships, disciplined lending, selective and strategic

acquisitions of bank and financial services businesses, and a consistent approach to business regardless

of economic conditions.

10-Year CAGRs AT 12/31/21

7.6
7.6% TOTAL
REVENUE GROWTH

15.7
15.7% FINANCIAL SERVICES
REVENUE GROWTH

6.0
6.0% NET INTEREST
INCOME GROWTH

10.0
10.0% NET
INCOME GROWTH

9.3
9.3% AVERAGE INTEREST-EARNING
ASSET GROWTH

7.8
7.8% TOTAL
LOAN GROWTH

15.9
15.9% NONINTEREST
DEPOSIT GROWTH

10.4
10.4% TOTAL
DEPOSIT GROWTH

5.4
5.4% DIVIDEND
GROWTH

10.7
10.7% NONINTEREST
INCOME GROWTH

5.1
5.1% OPERATING EARNINGS
PER SHARE GROWTH

9.6
9.6% COMMERCIAL
LOAN GROWTH

10.5
10.5% SHAREHOLDERS
EQUITY GROWTH

Intensely Focused on Investors

We’re an experienced acquirer that prides itself on providing best-in-class service to customers, rewarding career

opportunities to employees, and long-term value creation for shareholders who join Community Bank System

through acquisition.

386
386% VALUE CREATED FOR
ACQUIRED WILBER CORP.

192
192% VALUE CREATED FOR
ACQUIRED ONEIDA FINANCIAL

105
105% VALUE CREATED FOR
ACQUIRED MERCHANTS

SHAREHOLDERS SINCE 2010

CORP. SHAREHOLDERS

BANCSHARES SHAREHOLDERS

SINCE 2015

SINCE 2016

68
68% VALUE CREATED
FOR ACQUIRED STEUBEN

TRUST CORP. SHAREHOLDERS

SINCE 2019

Total Shareholder Returns (ANNUALIZED)

1 YEAR

5 YEARS

10 YEARS

15 YEARS

CBU

22.3%

6.4%

13.6%

11.8%

S&P 600 Commercial Banks Index

35.7%

4.9%

13.4%

3.7%

KBW Regional Bank Index

36.7%

5.4% 12.5%

4.1%

Through December 31, 2021 or most recent available, including reinvestment of dividends

Source: Bloomberg

CORPORATE and SHAREHOLDER INFORMATION

CORPORATE HEADQUARTERS
Community Bank System, Inc.
5790 Widewaters Parkway
DeWitt, NY 13214-1883
PHONE 315.445.2282 or 800.724.2262
FAX 315.445.7347
cbna.com

Annual Meeting
Wednesday, May 18, 2022
12:00pm EST

Wolferts Roost Country Club
120 Van Rensselaer Boulevard
Albany, NY 12204

STOCK LISTING

CBU
The common stock symbol of
Community Bank System, Inc. listing
on the New York Stock Exchange
(NYSE)

CmntyBkSys
Newspaper listing for common stock

TRANSFER AGENT AND

REGISTRANT OF STOCK
Shareholders requiring a change
of name, address or ownership
of stock, or information about
shareholder records, lost or stolen
certificates, and dividend checks,
direct deposit and reinvestment
should contact:

AST
Operations Center
6201 15th Avenue
Brooklyn, NY 11219
astfinancial.com
General questions: 877.253.6847

INVESTOR INFORMATION
Investor and shareholder information
regarding Community Bank
System, Inc., including all filings
with the Securities and Exchange
Commission, is available through the
company’s website: cbna.com

Copies may also be obtained without
charge upon written request to:

Ms. Marguerite Geiss
Investor Relations Department
Community Bank System, Inc.
5790 Widewaters Parkway
DeWitt, NY 13214-1883
315.445.7313
marguerite.geiss@cbna.com

INDEPENDENT AUDITORS
The Board of Directors appointed
PricewaterhouseCoopers, LLP as
auditor for the company for the year
ended December 31, 2021.

ANALYST COVERAGE
The following analysts published
research about Community Bank
System in 2021:

American Capital Partners
Anthony Polini / 908.625.1931
apolini@acpweb.com

Boenning & Scattergood
Erik E. Zwick / 610.862.5322
ezwick@boenninginc.com

D.A. Davidson & Co.
Russell E. T. Gunther / 212.223.5403
rgunther@dadco.com

Hovde Group LLC
Bryce Rowe / 804.318.0969
browe@hovdegroup.com

Keefe, Bruyette & Woods, Inc.
Christopher O’Connell / 212.887.4725
oconnellch@kbw.com

Piper Sandler
Alexander Twerdahl / 212.466.7916
alex.twerdahl@psc.com

Raymond James Financial Inc.
William J. Wallace IV / 703.749.1485
william.wallace@raymondjames.com

Stephens, Inc.
Matthew M. Breese / 401.658.1114
matt.breese@stephens.com

INVESTOR’S CHOICE PROGRAM
CBU offers convenient,
low-cost options for investors
wishing to steadily buy shares.
For information, contact:

AST
Operations Center
6201 15th Avenue
Brooklyn, NY 11219
astfinancial.com
General questions: 877.253.6847

SAFE HARBOR STAT EMENT
SAFE HARBOR STAT EMENT

The Community Bank System, Inc. Annual Report contains forward-looking statements, within the provisions of the Private Security Litigation
The Community Bank System, Inc. Annual Report contains forward-looking statements, within the provisions of the Private Security Litigation
Reform Act of 1995, that are based on current expectations, estimates, and projections about the industry, markets and economic environment in
Reform Act of 1995, that are based on current expectations, estimates, and projections about the industry, markets and economic environment in
which the company operates. Such statements involve risks and uncertainties that could cause actual results to differ materially from the results
which the company operates. Such statements involve risks and uncertainties that could cause actual results to differ materially from the results
discussed in these statements. These risks are detailed in the company’s periodic reports filed with the Securities and Exchange Commission.
discussed in these statements. These risks are detailed in the company’s periodic reports filed with the Securities and Exchange Commission.

COMMUNITY BANK SYSTEM, INC.
5790 Widewaters Parkway
DeWitt, NY 13214-1883
800.724.2262
315.445.7347 fax

cbna.com